Schneider & Stone PLChttp://www.chandleraccountant.com
Fri, 13 Mar 2015 23:41:18 +0000en-UShourly1http://wordpress.org/?v=4.1.1Tax Preparation Tips – Donationshttp://www.chandleraccountant.com/2013/12/tax-preparation-tips-donations/
http://www.chandleraccountant.com/2013/12/tax-preparation-tips-donations/#commentsFri, 13 Dec 2013 16:26:13 +0000http://www.chandleraccountant.com/?p=707Do you have piles of old clothing, or a garage full of items that you have been meaning to get rid of? Now may be the time to donate them to charity. Donations made prior to the end of the year can still be claimed on your 2013 tax return. Remember to keep good records […]

]]>Do you have piles of old clothing, or a garage full of items that you have been meaning to get rid of? Now may be the time to donate them to charity. Donations made prior to the end of the year can still be claimed on your 2013 tax return. Remember to keep good records which include a dated receipt with an estimate of the fair market value of your donation.

]]>http://www.chandleraccountant.com/2013/12/tax-preparation-tips-donations/feed/0Tax Tips – Additional Medicare Taxhttp://www.chandleraccountant.com/2013/12/tax-tips-additional-medicare-tax/
http://www.chandleraccountant.com/2013/12/tax-tips-additional-medicare-tax/#commentsMon, 02 Dec 2013 21:52:58 +0000http://www.chandleraccountant.com/?p=701Tax preparation season is almost upon us and to assist in planning we will be posting a series of tips over the next few weeks. As always if you have a question or would like to schedule your tax preparation appointment please contact us. Additional Medicare Tax Additional Medicare tax – applies to wages and compensation […]

$250,000 for married filing jointly and $200,000 for single taxpayers. Your employer must withhold the additional Medicare tax from wages if your wages are in excess of $200,000. Beware if you are married andeach spouse has wages and compensation less than $200,000 individually, but greater than $250,000 in total. You will be subject to the additional Medicare tax and it will not be withheld. As a result, you may owe more taxes when you file your 2013 tax return. Alternately, if one spouse makes $200,000 but the joint income is less than $250,000, you will have a credit towards your 2013 income taxes for the additional Medicare tax withheld.

]]>http://www.chandleraccountant.com/2013/12/tax-tips-additional-medicare-tax/feed/0Looking for a big deduction for your business?http://www.chandleraccountant.com/2013/09/looking-big-deduction-business/
http://www.chandleraccountant.com/2013/09/looking-big-deduction-business/#commentsMon, 02 Sep 2013 00:25:48 +0000http://www.chandleraccountant.com/?p=698Looking for a big tax deduction for your business? If you purchase a new heavy SUV (loaded gross vehicle weight over 6,000 pounds) in 2013, you can get a large depreciation deduction. As an example, say that your company buys an qualified SUV (must be new) for $50,000, First, the company can expense the […]

If you purchase a new heavy SUV (loaded gross vehicle weight over 6,000 pounds) in 2013, you can get a large depreciation deduction. As an example, say that your company buys an qualified SUV (must be new) for $50,000, First, the company can expense the $25,000 cap for SUVs. Half of the remaining cost of $25,000 may be taken as bonus depreciation. In addition, 20% of the $12,500 balance $2,500 is normal depreciation. Assuming this vehicle is 100% business use, the total first year write off is $40,000. Lighter vehicles have a maximum deduction of $11,160 in the first year. Pickup trucks with loaded weights over 6,000 pounds can be fully expensed as long as the cargo bed is at least 6 feet long and not accessible from the cab.

As always it is important to check with your tax professional to make sure this would work for you. If you don’t have a tax professional, give us a call. Schneider & Stone PLC helps individuals and small businesses with tax preparation in Chandler and the surrounding area.

]]>http://www.chandleraccountant.com/2013/09/looking-big-deduction-business/feed/0I owe the IRS, what do I do?http://www.chandleraccountant.com/2013/06/i-owe-the-irs-what-do-i-do/
http://www.chandleraccountant.com/2013/06/i-owe-the-irs-what-do-i-do/#commentsThu, 27 Jun 2013 22:59:44 +0000http://www.chandleraccountant.com/?p=694So you owe the IRS, now what? April 15th has come and gone, but unfortunately for some people the issues with the IRS are just beginning. If after filing your tax return you find yourself owing the IRS money it is time to look at your options. Before we discuss what can be done it […]

April 15th has come and gone, but unfortunately for some people the issues with the IRS are just beginning. If after filing your tax return you find yourself owing the IRS money it is time to look at your options. Before we discuss what can be done it is important to mention what should not be done. Do not ignore the situation. The IRS tends to be very reasonable to deal with, when you let them know what is going on. If you are receiving notices and ignoring the situation you are simply going to make a bad situation worse.

Now for the options

Pay them- Sounds simple enough, if you owe the IRS a tax bill obviously you can simply pay them the amount. Depending on your situation you may have some penalties and interest, however paying the balance in full is always a great option.

Request a short term extension- You or your tax professional can request a 6 month extension of time to pay the IRS. This extension doesn’t stop interest and penalties but it does allow time to save the money and full pay the balance. This is a great option if you are short on cash right now but will have the funds to pay in the near future.

Payment plan– If you don’t believe you can pay the full balance in the next 6 months the IRS will often allow you to do a payment arrangement. You or your tax professional can contact the IRS and arrange payments over the next 3-5 years.

Currently Non Collectible Status (CNC)- Depending on your financial situation you may qualify for a status of currently non collectible. This status exists to allow taxpayers in hardship to postpone collection activity until their financial situation improves. Contact your tax professional for more information and to see if you are a candidate.

Offer in Compromise- Depending on the amount you owe, your income and your assets it may make sense to discuss settling your debt with the IRS. The IRS recently introduced the Fresh Start program designed to help taxpayers get a clean slate. This new program loosened the eligibility requirements for offers. To find out if you are a candidate contact your tax professional.

Just remember, if you owe the IRS money there are options. It is important to get in touch with the IRS or your tax professional early, don’t wait for the IRS to come to you.

]]>http://www.chandleraccountant.com/2013/06/i-owe-the-irs-what-do-i-do/feed/0Arizona transaction privilege rate changeshttp://www.chandleraccountant.com/2013/06/arizona-transaction-privilege-rate-changes/
http://www.chandleraccountant.com/2013/06/arizona-transaction-privilege-rate-changes/#commentsMon, 03 Jun 2013 04:40:19 +0000http://www.chandleraccountant.com/?p=690Arizona TPT rate changes effective June 1st, 2013 Businesses in Arizona that are required to collect Transaction Privilege Tax (TPT) need to remember to change their tax rates effective June 1st. The expiration of the temporary tax from 2010 will reduce the Maricopa County tax rate from 7.3% to 6.3%. Business owners using a point […]

Businesses in Arizona that are required to collect Transaction Privilege Tax (TPT) need to remember to change their tax rates effective June 1st. The expiration of the temporary tax from 2010 will reduce the Maricopa County tax rate from 7.3% to 6.3%. Business owners using a point of sale system or QuickBooks to automatically calculate the sales tax will need to adjust their software to the correct amount. Keep in mind in Arizona it is the vendor’s responsibility to charge the appropriate tax rate.

]]>http://www.chandleraccountant.com/2013/06/arizona-transaction-privilege-rate-changes/feed/0IRS Late Filing Penaltieshttp://www.chandleraccountant.com/2013/04/irs-late-filing-penalties/
http://www.chandleraccountant.com/2013/04/irs-late-filing-penalties/#commentsWed, 10 Apr 2013 17:30:45 +0000http://www.chandleraccountant.com/?p=681As the April 15th deadline approaches, we felt it would be a good time to discuss the IRS penalties for late filing and what one can do to avoid them. The penalties being discussed are all regarding individual tax returns. We will write a post at a later date discussing business return penalties. Late Filing […]

]]>As the April 15th deadline approaches, we felt it would be a good time to discuss the IRS penalties for late filing and what one can do to avoid them. The penalties being discussed are all regarding individual tax returns. We will write a post at a later date discussing business return penalties.Late Filing Penalty- Individual Income Tax Returns

What it is: Any return that is filed past the due date (without an extension) is subject to a 5% penalty for any portion of a month that the return is late. This penalty is capped at 25% of the unpaid balance. This penalty is the most costly of the deadline related penalties and it is the most avoidable.

Extension: A timely filed extension grants the taxpayer an additional 6 months to file. However, this does not extend the payment due date. If a return is filed past the extended due date of October 15th the penalties are computed on the balance owed without regard to the extension. This means the penalty calculation would begin April 15th.

How to avoid: In order to avoid this late filing penalty, a taxpayer must file a return or extension by April 15th. If a taxpayer owes tax and is unable to pay, it is still far better to file and pay late than not file on time. In this case, the taxpayer would still incur late payment penalties but would avoid the costly late filing penalty.

In a nutshell, all individual taxpayers with a filing requirement should file either a return or extension by April 15th. Once a return is extended, make sure the return is filed prior to the extended due date.

]]>http://www.chandleraccountant.com/2013/04/irs-late-filing-penalties/feed/02009 Refund Deadline Approachinghttp://www.chandleraccountant.com/2013/03/2009-refund-deadline-approaching/
http://www.chandleraccountant.com/2013/03/2009-refund-deadline-approaching/#commentsWed, 27 Mar 2013 16:47:24 +0000http://www.chandleraccountant.com/?p=675Nothing special, but figured I’d get something out there. Let me know what you think… Again not my best work but I just want to get something new up on the page April 15th signifies more than the deadline to file individual tax returns for 2012. It also closes the door on collecting refunds […]

]]>Nothing special, but figured I’d get something out there. Let me know what you think… Again not my best work but I just want to get something new up on the page

April 15th signifies more than the deadline to file individual tax returns for 2012. It also closes the door on collecting refunds for the 2009 tax year. The IRS has estimated that taxpayers still have $917 million in refunds outstanding from 2009. Click here for the IRS article. Additionally, taxpayers who need to amend 2009 returns that would result in a refund must amend by April 15th (October 15th if an extension was filed) in order to receive the refund back from the IRS.

]]>http://www.chandleraccountant.com/2013/03/2009-refund-deadline-approaching/feed/0Finally time to file taxes with education and depreciationhttp://www.chandleraccountant.com/2013/02/finally-time-to-file-taxes-with-education-and-depreciation/
http://www.chandleraccountant.com/2013/02/finally-time-to-file-taxes-with-education-and-depreciation/#commentsWed, 13 Feb 2013 02:20:50 +0000http://www.chandleraccountant.com/?p=669The Internal Revenue Service announced that it would begin accepting tax forms containing depreciation on Sunday, February 10, and forms covering education credits on Thursday, February 14. These forms are Form 4562 – Depreciation and Amortization and Form 8863 – Education Credits. With the acceptance of these forms, the IRS has cleared the way for […]

]]>The Internal Revenue Service announced that it would begin accepting tax forms containing depreciation on Sunday, February 10, and forms covering education credits on Thursday, February 14. These forms are Form 4562 – Depreciation and Amortization and Form 8863 – Education Credits. With the acceptance of these forms, the IRS has cleared the way for the filing of the majority of individual income tax returns.

]]>http://www.chandleraccountant.com/2013/02/finally-time-to-file-taxes-with-education-and-depreciation/feed/0IRS Accepting Individual Tax Returns Beginning Today (for most)http://www.chandleraccountant.com/2013/01/irs-accepting-individual-tax-returns-beginning-today-for-most/
http://www.chandleraccountant.com/2013/01/irs-accepting-individual-tax-returns-beginning-today-for-most/#commentsWed, 30 Jan 2013 22:59:15 +0000http://www.chandleraccountant.com/?p=661The tax law changes under the American Taxpayer Relief Act (ATRA) caused a delay in filing for 2012 individual income tax returns. However, according to the IRS, the vast majority of filers should be able to start filing today (January 30, 2013). The IRS will be able to accept returns affected by the late Alternative […]

]]>The tax law changes under the American Taxpayer Relief Act (ATRA) caused a delay in filing for 2012 individual income tax returns. However, according to the IRS, the vast majority of filers should be able to start filing today (January 30, 2013). The IRS will be able to accept returns affected by the late Alternative Minimum Tax (AMT) patch as well as state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.

For those who file Form 8863 Education Credits, the IRS will begin accepting these returns in mid-February. However, several other forms will not be accepted until late February or early March due to extensive programming changes.

The key forms that require more extensive programming changes include the following (available late February or early March):
Form 5695 (Residential Energy Credits)

Form 4562 (Depreciation and Amortization)

Form 3800 (General Business Credit)

In addition to the above, there are more than 20 other forms delayed. However, those forms are far less common then those mentioned above. For a complete list of delayed forms is available on the IRS website.

Even if you are required to file one of the delayed forms in order to complete your income tax return, do not delay having your return prepared. Your tax professional can prepare your return and let you know the results now and then file when the forms become available. Not only will you avoid a late tax season rush, you will be able to plan for your tax payment or refund accordingly.

]]>http://www.chandleraccountant.com/2013/01/irs-accepting-individual-tax-returns-beginning-today-for-most/feed/0Your income tax rate may be higher than you think!http://www.chandleraccountant.com/2013/01/your-income-tax-rate-may-be-higher-than-you-think/
http://www.chandleraccountant.com/2013/01/your-income-tax-rate-may-be-higher-than-you-think/#commentsWed, 23 Jan 2013 00:56:12 +0000http://www.chandleraccountant.com/?p=654Your 2013 income tax marginal rate may be higher than you think. Married filers with incomes over $300,000 and singles with incomes over $250,000 will want to read on. The individual income tax rate does not jump to 39.6% until married filers reach over $450,000 of taxable income for 2013. Beware – due to phase […]

]]>Your 2013 income tax marginal rate may be higher than you think. Married filers with incomes over $300,000 and singles with incomes over $250,000 will want to read on.

The individual income tax rate does not jump to 39.6% until married filers reach over $450,000 of taxable income for 2013. Beware – due to phase outs of itemized deductions and personal exemptions, many filers may pay more than 35% (which is the top rate in 2012).

Married filers with over $300,000 ($250,000 for singles) of adjusted gross income will see their itemized deductions reduced by 3% of the excess of adjusted gross income over $300,000 ($250,000 for singles). Deductions such as mortgage interest, charitable contributions, and property taxes will be subject to the phase out. Medical expenses, investment interest and casualty losses are exempt.

Notice that the phase-out of itemized deductions is not based on taxable income, but rather AGI. As a result, filers with a large amount of itemized deductions could be subjected to the phase out even if they are in the 28% bracket.

Personal exemptions will be reduced by 2% for each $2,500 of AGI over $300,000 for couples. A family of four with AGI of $350,000 would lose 40% of their personal exemptions.

Good tax planning is essential with tax law changes such as these that many filers are not aware of.